Consider this: the hard drive is the least reliable component of almost any modern PC/laptop. Add to this that it likely contains the most valuable non-commodity asset: your data. Anyone not backing up their system is really asking for trouble... which will happen. Given the ease of use of modern backup systems, and their cost (free only costing a modest amount of your time), everyone should be doing it. OSX and Win7…
Unfortunately it is not. You pay for it either in bandwidth and service price (or in reliability of free service) or by buying a new harddrive.
Cost of a 500GB drive is rather far from "free".